Oxley, Incorporated manufactures three products (Alpha, Beta, and Gamma) utilizing, in one of the processes, a single machine for all products. Data on the individual products follow:

	Aplha	Beta	Gamma
Price per unit	$ 476	$ 1,434	$ 713
Variable cost per unit	$ 200	$ 858	$ 443
Machine minutes per unit	12	48	30
Maximum demand per period (units)	34,000	3,400	15,200

The single machine used for all three products has a maximum capacity of 642,000 minutes per period.

Required:

a. A local engineering firm claims it can revise the production process such that the Gamma product only requires 20 machine minutes on the shared machine. How much would Oxley be willing to pay per period for the new process?

b. Suppose, instead, that the local engineering firm can revise the production process such that Beta only requires 40 machine minutes on the shared machine. (Gamma requires 30 machine minutes as in Problem 4-77). How much would Oxley be willing to pay per period for the new process?